What's up ninja? Kris Krohn here. And recently, I got a question. Someone said,
"Hey, how do I actually leverage the cash value in my life insurance policy?" And I
thought, "You know what? I'll answer that question because I do that all the time."
For business I use it to fund my real estate investments. So today, I'm going to
show you the ins and outs of how you tap into cash value to use it purposefully.
So, in case you've forgotten, just a little bit of a reminder. When you set up
a whole life insurance policy, it's not a term policy with the death benefit. Whole
life insurance has a death benefit and a living benefit. Which means every month
that you write that check, a little bit goes towards the death benefit. The rest
of it goes towards building up cash value that you can access. Now, it's a
very smart strategic bank. What I love about whole life insurance is that I'm
generally earning dividends of 5% on my money when it's sitting in there. And
sometimes more than that. Which is fantastic because it's not going to get
me rich but I feel way more responsible than letting my money sit in the bank.
You get my meaning earning half of nothing percent? The second thing is my
money is untouchable when it's in there. Which mean it is the only unlegatable
policy on the plans. The only place you can put money where no one can touch
it. Government can't touch it. No one else can touch it either. So, I like that. Third,
most importantly, is that I get all these awesome tax benefits. Which means I get
to grow my money tax-free in there. So when I pull it out, here's how you do it.
You call up the custodian, the person that you have the account with. For my
guy, just shoot him to tax. I'm like, "Hey, send me a check for 30 grand. Send me a
check for 200 grand." Whatever it is. And he'll generally say 1 or 2 things.
He'll either say, "Kris, would you like me to send it in snail mail and take 10
days? Or do you want me to have it wired to you?" It's up to you how you want to do
it. It's not the most convenient Bank because I make a phone call and then the
money gets sent to me. But that works just fine for me. Now, the money is
sitting in my account and now I can use it to support a business. Start a
business, invest in real estate and do real smart maneuvers. I came out of 5%. So
now I'm looking to do like in my real estate earn 20% or maybe it's 25%. When
I'm done with my real estate and I pull it back out, guess what I'm going to do?
I'm going to pay my policy right back. Fill it right back up. And now, I've built a
shelter because all my money sitting in there is growing tax-free again. Isn't
that awesome? It's fantastic. So, let me give you kind of
a real-world example. So, I recently did a deal. And I short-term needed to show
$100,000. And so in my policy, I texted my buddy Guerin. And I
said, "Buddy, I need 100 grand." 2 days later, the money was sitting there. I
used it. And for this situation I just needed to prove
collateral. The collateral was to basically show good faith on another
project that I was doing. Once they saw that I was 100,000 liquid in
the bank versus my policy, they gave me the thumbs up.
I took the 100 grand. I popped it right back in my account. And it had
served its purpose. Now, I got to tell you right now, I love whole life insurance.
But most insurance carriers... And more importantly, most insurance agents, they
don't know how to set up these policies the right way. It's kind of a travesty.
Because if you want to be able to put money in and take it out, the insurance
company will pay very low Commission on that. So, your insurance buddy
unfortunately is usually incentivized to say, "Let's do the policy this way and
then it may be 4 or 5 years or 8 years you can pull some money out
of it." Because they really don't want you to touch it. That's what allows them to
have a much higher commission. In the end, it's important for you to access your
money. A whole life insurance policy is a really smart better than a normal bank
account. And I use mine as a bank account to support all of my business, all of my
investments. And you know what? That's also where I put my sleep well at night
money. So, if there was a rainy day, if something bad were to happen, that's
where I store that money that I can pull out and actually access it super, super
easy. So friends, I hope that's helpful for you in understanding whole life
insurance and understanding how to leverage cash value. If you don't know
what it is, all you have to do is call up your carrier and say, "How much in cash
value do I have?" Or if you're thinking about starting a policy, what you really
need to do and even if you have an old policy. And they don't let you take very
much of it out. Over the last decade, I've only found 3 people I implicitly
trust. To set up and design the right policy to support my investing. And I got
a list of them in the link below. So, if you click it, it'll direct you to my most
trusted group that will actually set that up for you and they'll do a
fantastic job doing it. And then you can be like me. Smarter, more sophisticated,
saving your money, earning greater returns on your money and protecting
your money. All the things that a smart investor and a smart human being is
actually looking for. Best wishes. Hey, I hope you enjoyed watching today's
video. I made it just for you. and most of these videos I make are based on your
comments. So, if there's a video you haven't seen on my channel out of the
hundreds and hundreds and hundreds and hundreds of videos, then comment on it
below. It gives me ideas to let me and my team know
want to make videos on that will best to support you. Bottom line is we're here to
help you become financially free. A couple last things for you to think
about. I've got all sorts of free tools if you go to my website kriskrohn.com
so you can get free copies of my books. Or you can you know grab free
calculators on how to build wealth and when you're gonna retire. You can, you
know, do free break through with me and my break throughout. Or most importantly,
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long. And what I'm doing is I'm training you to think like a multi-millionaire.
Frankly, I'm teaching I think like a billionaire. They think different, they
process different. I'm going to teach you how to be much happier human being along
the way. So hopefully we get a chance to enjoy that experience together. Thanks
for watching today's video. Do subscribe and I'll see you tomorrow.